E-coupon service for location-aware mobile commerce which determines whether to supply requested e-coupons based on the number of requests received in a processing cycle, and a threshold number of requests required to make expected returns from redeemed coupons greater than advertising fees

ABSTRACT

A conditional e-coupon distribution method distributes e-coupon predefined by sellers to mobile users only if the number of mobile users requesting such e-coupons equals or exceeds a threshold. The method receives a request to browse e-coupons from a mobile user. The method receives the location of the mobile user and determines a plurality of sellers local to the mobile electronic device and a plurality of corresponding e-coupons available from the local sellers. The method receives a request for a particular e-coupon from a seller and authorizes the provision of said e-coupon to the mobile user. At the end of a processing cycle, the mobile user receives the requested e-coupon if all conditions, such as a period of time and threshold, have been met. A computer-usable medium having computer-readable program code embodied therein allows for storage of the method.

CROSS-REFERENCE TO RELATED APPLICATION

This application is a continuation of Ser. No. 10/002,999, filed Nov. 2,2001, entitled E-COUPON SERVICE FOR LOCATION-AWARE MOBILE COMMERCE WHICHDETERMINES WHETHER TO SUPPLY REQUESTED E-COUPONS BASED ON THE NUMBER OFREQUESTS RECEIVED IN A PROCESSING CYCLE, AND A THRESHOLD NUMBER OFREQUESTS REQUIRED TO MAKE EXPECTED RETURNS FROM REDEEMED COUPONS GREATERTHAN ADVERTISING FEES, which issued as U.S. Pat. No. 6,996,579 on Feb.7, 2006.

FIELD OF THE INVENTION

The present invention relates to electronic coupon distribution and,more particularly, to conditional electronic coupon distribution to amobile user.

BACKGROUND OF THE INVENTION

Today, there exist a few techniques for distribution of electroniccoupons (e-coupons) to potential customers. A seller of a service orproduct can distribute mass email messages with e-coupons attached to orwithin the message. The seller then hopes that at least some of thepotential customers who receive the messages will redeem the e-couponsincluded. Additionally, a seller can post an e-coupon on a web site,whether or not owned by the seller, and hope that a potential customerwill see the e-coupon and choose to redeem it. Similar techniques existfor targeted distribution of coupons to attract potential customers wholive local to a seller. For example, local restaurants or stores canattempt to attract customers on web pages local to a particular city. Acity newspaper may have a website and these local sellers can poste-coupons on the site with the same hope of a customer seeing thee-coupon and choosing to redeem it.

Yet these and other techniques tend to be expensive to sellers andhighly inefficient in attracting potential customers. The mass emailsand e-coupon distribution carry a fixed cost based upon a hope that apotential customer exists. A seller must pay the website provider inorder to put its e-coupons on the website, without any assurance at allthat the e-coupons will be requested and redeemed by customers. Evenexisting location-aware wireless targeted advertising methods have acost to transmit an advertisement when a mobile customer is around aparticular store. A need exists to allow for distribution of an e-couponwhen a desired profit margin for the seller has been statisticallyguaranteed.

Generally, potential customers choose a particular type of service orproduct and then seek to find the service or product based upon someneed, whether such need is based on cost, ease of acquisition, location,or some other factor. Customer service can be enhanced if an e-couponservice were provided based upon an initial inquiry from the customer.In such an example, a seller has a substantially increased opportunityto ensure that an e-coupon is redeemed because the customer initiatesthe desire for the e-coupon rather than a random e-coupon being sent toa customer.

However, a seller needs additional safeguards to ensure that distributede-coupons will be redeemed not only at a high probability, but also atan economic advantage to the seller. A seller wants to issue e-couponsso that a larger number of potential customers will redeem thee-coupons, because the seller has no economic incentive when one or afew customers actually redeem the e-coupons. Additionally, a sellerneeds to ensure that the distribution of e-coupons does not becomeeconomically ineffective by continually distributing e-coupons that arenot redeemed.

In addition to business concerns, there are privacy concerns andtechnical issues often left unresolved in wireless targeted advertisingand distribution systems. Privacy concerns have emerged from FCCrequirements that wireless service providers must be able to identifythe locations of cellular phone users making emergency calls after Oct.1, 2001. The concern stems from the worry that wireless serviceproviders will turn the FCC requirement into a source of profit. Inparticular, the wireless service providers could release the locationinformation of mobile users to anyone wiling to pay for suchinformation, including individuals or others who will mishandle thisinformation.

Technical issues also exist from the standpoint of wireless serviceproviders. In order for a participating seller to send a targetedadvertisement to mobile users at a right time and in a right place, thelocation information of the mobile users must be accurate and monitoredclosely. To do so, all mobile devices must frequently send location datato the network, and thus cause significant uplink signaling traffic thatmay eventually overflow the network. The situation could get even worseif the location identification methods are network-based ornetwork-assisted because they consume significant computing resourcesfrom the network.

Therefore, a need exists to allow for distribution of e-coupons topotential customers based upon an initial desire from the customer andan assurance for a seller to make extra profits in a statistical sense.Privacy concerns and technical issues also need to be addressed in orderto promote location-aware mobile commerce in an optimal manner.

BRIEF SUMMARY OF THE INVENTION

The present invention provides a conditional e-coupon distributionsystem for a mobile network that distributes e-coupons predefined bysellers to mobile electronic devices of users only if the number ofmobile users requesting such e-coupons equals or exceeds a threshold.Although the invention is primarily shown and described in conjunctionwith a cellular telephone network distributing e-coupons, it isunderstood that the invention is applicable to other network types inwhich it is desirable to distribute e-coupons.

In one embodiment, the invention operates in a mobile communicationsystem based on multiple cells. The invention comprises a profiledatabase, a profile proxy server, and a commerce server. The systemreceives a request to browse at least an e-coupon from a mobile user.The system receives the current location of the mobile user from themobile user and determines a plurality of sellers local to the mobileuser as well as a plurality of the corresponding e-coupons for thosesellers. Upon receiving a request for a particular e-coupon from themobile user, the invention authorizes whether the e-coupon should bedistributed to the mobile user.

The invention operates according to a processing cycle. At the end of aprocessing cycle, the mobile user receives the requested e-coupon if allconditions, such as a period of time and threshold, have been met. Onlyif the threshold number of mobile users requesting a particular e-couponhas been met or exceeded is an e-coupon, from a particular seller,distributed.

The threshold value is calculated at the end of the processing cycle.The threshold value is then compared to the number of pending requestsin the profile of the particular seller in question. Only upondetermining that the number of pending requests is greater than or equalin value to the threshold value are the e-coupons distributed. The useof a threshold value and authorization to distribute are two examples ofhow the invention ensures a seller will make extra profits in astatistical sense.

The invention can improve the advertising effectiveness andcost-efficiency, because (1) e-coupons are only distributed to mobileusers who explicitly request such e-coupons; (2) e-coupons for aparticipating seller are distributed only if the number of mobile userswho requested such e-coupons equals or exceeds a threshold; (3) aparticipating seller is assured to make extra profit in a statisticalsense by adopting the threshold calculated by the conditional e-couponservice provider; and (4) a participating seller is charged anadvertising fee by the conditional e-coupon service provider only afterits e-coupon are distributed.

A feature that differentiates the conditional e-coupon service fromconventional advertising methods is that the conditional e-couponservice neither pushes advertisement messages to mobile users nor doesit arbitrarily send (costly) advertisements. Once a seller is advertisedusing the conditional e-coupon service, the threshold value assures asufficiently large mobile user base from which a seller can make aprofit in a statistical sense after paying an advertising fee to theconditional e-coupon service provider.

The conditional e-coupon service concept also includes a quota systemthat strikes a good balance between giving mobile users sufficientfreedom not to redeem received e-coupons for whatsoever reasons andpreventing irresponsible mobile users from sending a large volume ofe-coupon requests when the mobile users have no intention to redeem anyof the received e-coupons.

In addition, the present invention can eliminate the technical problemfor wireless targeted advertising because it is operated based onrequests made by mobile users. The accurate location information ofmobile users is conveniently imbedded in these requests, and thereforemobile users do not need to send periodical location update messages towireless networks. The invention also eliminates any privacy concerns,because it does not need to track the location of mobile users and itonly supplies participating sellers with statistical information of agroup of mobile users (such as how many mobile users have requestede-coupons from the seller) instead of information of individual mobileusers.

In view of the present invention, it can be seen qualitatively that aconditional e-coupon service expects to receive welcome from allinvolved parties. Mobile users save money right before they go shopping.The invention is particularly useful to a group of mobile users planningto visit the same seller. Participating sellers find the conditionale-coupon service a cost-efficient targeted e-coupon distribution scheme,because e-coupons are distributed to mobile users only if e-coupons canbring enough estimated redeems that can make extra profits for theseller. The conditional e-coupon service provider can earn advertisingfees from the participating sellers. Finally, the wireless serviceproviders may find they can expand customer base by associating with theconditional e-coupon service provider because both mobile users andparticipating sellers need wireless data services to utilize thedistribution service.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic diagram of an exemplary conditional e-coupondistribution system in accordance with the present invention.

FIG. 2 is a further schematic diagram of an exemplary conditionale-coupon distribution system in accordance with the present invention.

FIG. 3 is a schematic diagram of a particular embodiment of aconditional e-coupon distribution system in accordance with the presentinvention.

FIG. 4 is a pictorial representation of a particular embodiment of aconditional e-coupon distribution system in accordance with the presentinvention showing user movement.

FIG. 5 is a block diagram of an exemplary commerce server that can forma part of a conditional e-coupon distribution system in accordance withthe present invention.

FIG. 6A is a block diagram of an exemplary profile database that canform part of a conditional e-coupon distribution system in accordancewith the present invention.

FIG. 6B is a further block diagram of an exemplary profile database thatcan form part of a conditional e-coupon distribution system inaccordance with the present invention.

FIG. 7 shows an exemplary sequence of steps for responding to ane-coupon request in a conditional e-coupon distribution system inaccordance with the present invention based upon a processing cycle.

FIG. 8 shows another exemplary sequence of steps for responding to ane-coupon request in a conditional e-coupon distribution system inaccordance with the present invention based upon a processing cycle.

FIG. 9 shows further an exemplary sequence of steps for authorizingwhether an e-coupon should be distributed in accordance with the presentinvention.

FIG. 10 shows a conditional e-coupon profit versus a threshold curve.

FIG. 11 shows a maximum conditional e-coupon profit versus anadvertising price curve.

FIG. 12 shows a maximum conditional e-coupon revenue versus advertisingprice curve.

FIGS. 13A through 13E show an example of how a mobile user mightinteract with the present invention.

DETAILED DESCRIPTION OF THE INVENTION

FIGS. 1 and 2 show a wireless mobile communication system 100 havingconditional e-coupon distribution in accordance with the presentinvention. In general, the system sends e-coupons to mobile users basedupon user location and conditions specified by users and sellers. Thisarrangement provides an efficient mechanism for suppliers of goods andservices, i.e., sellers, to distribute e-coupons to mobile users whowish to receive an e-coupon from a particular seller.

In one embodiment, the mobile communication system 100 includes aplurality of cells 102 a-d each served by a respective base station 104a-d in a manner well known to one of ordinary skill in the art. Each ofthe base stations 104 a-d can be coupled to a respective commerce server106 a-d for providing messaging instructions to the base station asdescribed in detail below. The commerce server 106 can be connected to aprofile proxy server (PPS) 108 via a network 110, such as the Internetor intranet. A plurality of mobile users 202 a-N and sellers 204 a-M(FIG. 2) can communicate with the profile proxy server 108 via theInternet 110, for example. The profile proxy server 108 can send theprovided information to a commerce server 106 that is local to themobile user for storage in a database.

FIG. 3 shows one particular embodiment of a conditional e-coupondistribution system 300 in accordance with the present invention thatcan be coupled to a General Packet Radio Service (GPRS) network 350. Theconditional e-coupon distribution system 300 includes a profile proxyserver 108 coupled to a commerce server 106 and to a profile database107, which is also coupled to the commerce server 106. As describedbelow, the profile database 107 can store profile data for mobile usersand sellers associated with the mobile network. The profile proxy server108 is coupled to the Internet 110 via a conventional gateway 111. Inone embodiment, one profile proxy server 108 can support a plurality ofcommerce servers 106 throughout the conditional e-coupon distributionsystem. Further, the profile database 107 could comprise multipledatabases for storage of data profiles of mobile users and sellers.

The GPRS network 350 includes a Serving GPRS Support Node (SGSN) 352coupled to a local commerce server 106 and to a Gateway GPRS SupportNode (GGSN) 354. The SGSN 352 communicates with a base station 104covering the local cell 102 for providing mobile service to users 202within the cell. The commerce server 106 provides e-coupon informationto the local SGSN 352 for transmission by the associated base station104.

As shown in FIG. 4, mobile users 202 a-N move within, into, and out ofdifferent cells 102 within the network. Sellers 204 a-M want to contactpotential users 202 that have expressed a desire for their type of goodsor services. In general, sellers 204 wish to identify users proximatetheir location to maximize the likelihood that a user will visit theseller. As described below, the conditional e-coupon distribution systemof the present invention can transmit e-coupons that are requested byusers 202 proximate a particular seller 204 provided that the profileconditions, e.g., type of goods, threshold, time, location, are met bythe request. The e-coupon identifies the seller and allows the mobileuser to locate and/or contact the seller. Sellers specify conditions,e.g., range, time, number of mobile users, under which the e-coupons aredistributed, as described below.

As described above in connection with FIGS. 1-3, mobile users 202provide profile information to a local commerce server 106 under thecontrol of the profile proxy server 108. In one embodiment, the mobileuser 202 can provide profile information via the Internet 110 tomaximize user convenience. The profile proxy server 108 ensures that themobile user profile information is stored in a profile database 107associated with a commerce server 106 that is local to the mobile user'sbase location, e.g., home address. As described in detail below, thebase station 104 covering the mobile user's current location transmitse-coupon information that is received by mobile users.

In general, sellers specify conditions for distributing e-coupons.Exemplary conditions include distributing their e-coupons only when apredetermined number of mobile users have requested an e-coupon of theseller, at certain times of the day, and certain days of the week. Inaddition, the seller profile can contain driving directions to theseller and other e-coupons available from the seller. The seller profilecan further include periods of time desired for e-coupon distribution,mobile user distance range, and type of e-coupon. The seller conditionscan be stored in a seller profile database associated with a commerceserver local to the seller.

In one embodiment, a seller can manually determine the number of mobileusers within the seller's local area that have requested the seller'se-coupon by connecting to the proxy server. For example, a seller cancommunicate with a local commerce server that provides mobile userinformation to the seller. The seller can then manually distributee-coupons to mobile users who have requested the seller's e-coupon. Inthis example, a seller has the option to allow the e-coupons to bedistributed to users who have requested the e-coupon although sellerconditions, such as time of day, range, etc., have not been satisfied.Thus the seller can distribute the e-coupons without identifying aparticular mobile user. Therefore, user privacy can be maintained byprotecting the actual identity of the mobile user.

FIG. 5 shows an exemplary embodiment of a commerce server, such as thecommerce server 106 of FIGS. 1 and 2, that forms part of a conditionale-coupon distribution system in accordance with the present invention.In one embodiment, the commerce server 106 includes an instant messageserver 501 for generating instant messages to a mobile user in responseto an active request for information from a mobile user. The instantmessage server 501 can also include the mobile user in a group of mobileusers to receive e-coupons in response to an inquiry.

The commerce server 106 can further include a mobile user locationmonitor 502 for monitoring the location of mobile network users. Asdescribed more fully below, the mobile user's location can be used todistribute e-coupons requested by the mobile user. A multicast messagegateway 503 delivers e-coupons to a selected group of mobile users via aGPRS network in a multicast format. Alternatively, the e-coupons can bedistributed using conventional Short Message Service (SMS) or CellularDigital Packet Data (CDPD) email services.

The commerce server 106 can further include a profile database 504 forstoring mobile user and seller profiles. Mobile users and sellers canmodify their profile information via the profile proxy server 108through the Internet 110.

In one embodiment, the mobile user and seller profiles are stored on thecommerce server 106 that is local to the respective mobile user orseller. The profile proxy server 108 can contain a user-message serverindex. With this arrangement, in the case where a mobile user is notwithin the area served by the commerce server containing the mobileuser's profile, the profile proxy server can be queried by the commerceserver in which the mobile user is currently located to obtain themobile user's profile, as described more fully below.

Referring to FIG. 6A, a block diagram is shown depicting an exemplaryprofile database, such as the profile database 107 of FIG. 3 that formspart of a conditional e-coupon distribution system in accordance withthe present invention. In one embodiment, the profile database 107includes first, 602, and second, 603, tables that store all mobile userprofiles 612 a-e and all seller profiles 613 a-e respectively. Thetables are indexed by a mobile user identification and a selleridentification respectively.

Referring to FIG. 6B, a block diagram is shown depicting an exemplaryprofile database, such as the profile database 107 of FIG. 3, furtherdefining information found within a particular mobile user profile 612a, and seller profile 613 a. In one embodiment, the mobile user profile612 a includes: a mobile user identification field 622 a; a mobile userinstant contact address field 622 b; an e-coupon quota field 622 c; anda number of effective requests field 622 d. Other fields 622 e couldinclude information such as a percentage of e-coupon redemptions for themobile user, a password for changing account information, an option toallow for automatic notification of e-coupons from a particular sellerwhen the mobile user is local to the seller, and a listing of pastpurchases using the conditional e-coupon distribution service.

The mobile user instant contact address field 622 b could comprise amobile phone number, a Short Message Service (SMS) address, an instantmessage address, an email address, or a mobile email address belongingto a mobile phone or other mobile device capable of supplying locationinformation.

The e-coupon quota field 622 c comprises the number of e-coupons themobile user can possibly receive during a quota reset cycle, apredefined period of time. At the first time when a mobile user uses theconditional e-coupon system or at the beginning of a quota reset cycle,i.e., week, month, a value is assigned to the e-coupon quota field 622 cin the mobile user profile 612 a. After the mobile user requests ane-coupon, the e-coupon quota field is decreased by a value of one in theprofile of the mobile user. Should the mobile user not receive thedesired e-coupon, or if the mobile user receives the e-coupon andredeems it, the e-coupon quota field is increased by a value of one.

If the e-coupon field reaches a value equal to zero, the mobile usercannot request any e-coupons, from any seller, until the next quotareset cycle, i.e., next week, month. This safeguard is introduced in theprofile of the mobile user to prevent an irresponsible mobile user fromabusing the conditional e-coupon service, because a fundamentalassumption for the conditional e-coupon service is that a mobile userwill redeem at least one of the e-coupons received upon a request at avery high probability. The e-coupon quota field 622 c allows for mobileuser freedom in obtaining a number of e-coupons at any one time,rewarding mobile users that redeem e-coupons, and protection of theinterests of sellers.

The number of effective requests field 622 d is the number of requeststhat result in receiving e-coupons. At the end of every quota resetcycle, an e-coupon effectiveness ratio for every customer can beestimated from the remaining quotas and the number of effectiverequests. This e-coupon effectiveness ratio is used to optimize theconditional e-coupon service operation and is described below.

In one embodiment, the seller profile 613 a includes: a selleridentification field 633 a; a seller name field 633 b; a seller addressfield 633 c; a seller billing information field 633 d; a seller instantcontact address field 633 e, a seller business type field 633 f; anumber of allocated e-coupon field 633 g; a type of e-coupon field 633h; a number of pending requests field 633 i; a number of pending redeemsfield 633 j, and an estimated number of redeems field 633 k. Otherfields 633 l could include information such as driving directions to theseller, a password for changing account information, and a percentage ofe-coupon redemptions.

The seller instant contact address field 633 e could comprise a phonenumber, an instant message address, an email address, or any othermethod by which the seller can be notified that an e-coupon of theseller has been distributed. The seller business type field 633 f isdescribed by a set of keywords, which can be used in the case where amobile user enters a keyword instead of a seller name to requeste-coupons.

In the seller profile, the seller also needs to predefine one or moree-coupons. Every e-coupon is associated with some conditions, includingtime (when e-coupons can be distributed), range (where e-coupons shouldbe distributed), and a pre-advertising profit margin (how much profitthe seller can make from a mobile user redeeming the e-coupon). Ifmultiple e-coupons are predefined, only one e-coupon is ready to beissued at a given time. That is, the time conditions are exclusivelyagainst each other. A type of e-coupon field 633 h could comprise thetime condition, the range condition, and the profit margin conditiondefined above.

The time condition for an e-coupon can be a scheduled period thatremains the same throughout a defined period. For example, the timecondition could be a five-minute processing cycle that operatesconsecutively, that is every five minutes. Alternatively, the timecondition could be a five-minute processing cycle that only occursbetween noon and midnight. Processing cycle times and windows fordistribution can vary and are not limited by the examples used herein.

The range condition for an e-coupon defines the boundaries fordistribution. For example, the range may be any mobile user requestingthe e-coupon that is within the same cell as the seller. Alternatively,the range may be within five miles of the seller. Finally, thepre-advertising profit margin is a parameter from which the conditionale-coupon system can calculate a threshold value for the seller andtherefore can determine whether the e-coupon of the seller should bedistributed to the mobile users who requested the e-coupon within thepreceding processing cycle. The pre-advertising profit margin is thedifference between the price and the cost of the service/goods promotedin the e-coupon.

FIG. 7, in combination with FIGS. 1-3, shows an exemplary sequence ofsteps for responding to an e-coupon request in a conditional e-coupondistribution system in accordance with the present invention. Ingeneral, a local commerce server receives a request for e-coupons, andupon receiving the request, the system authorizes whether the e-couponshould be distributed. A processing cycle begins in step 701. In step702, it is determined whether the system has received a request fore-coupons. Such a request could be defined by keywords, such as “grocerystore” or “fast food.” Alternatively, the request could be to browse forall e-coupons for a particular seller by the seller name. For thisexample, assume that the mobile user enters “fast food within one mile.”If the system receives a request, the location of the mobile device isreceived with the request in step 703. The methods for determining thelocation of a mobile device are well known in the art. An exemplaryembodiment entails the local commerce server receiving the currentlocation of the mobile user in connection with the request to browsebecause the mobile electronic device automatically inserts the locationdata as a header parameter in the outgoing request to browse message.

After receiving the request for e-coupons, the conditional e-couponprofile proxy server, in step 704, immediately sends a reply messageback to the mobile user, which shows, for example, the remaining quotaand estimated time to receive e-coupons (it is possible that the mobileuser may not receive any e-coupons). The conditional e-coupon profileproxy server then passes the request message to the condition e-couponcommerce server, along with the request time, the location of the mobileuser, and the instant contact address of the mobile user.

Consequently, the commerce server looks within the profile database forall sellers that have “fast food” in their service/goods descriptions.As in step 705, once a match is found, the commerce server first checksthe timing and range conditions set by the seller. If these conditionspermit e-coupon distribution, the commerce server then compares theseller location with the mobile user location and determines if the “onemile” requirement can be satisfied. If this requirement is satisfied,the seller is declared as a candidate seller for the request, and therequest is logged as a pending request to the seller. After all thecandidate sellers are identified, a redeem probability, which equals thee-coupon effectiveness ratio for the mobile user divided by the numberof candidate sellers, is assigned to every pending request. The e-couponeffectiveness ratio is estimated from statistics collected in theprevious quota reset cycle in the mobile user profile. The reason whythe number of candidate sellers serve as a denominator in the redeemprobability is that all candidate sellers are competitors against eachother and, thus, if all candidate sellers decide to issue theire-coupons, the mobile user will probably redeem only one of them. Notethat the commerce server does not immediately decide whether e-couponsshould be distributed. Instead, it makes such decision at the end of theprocessing cycle, which could be about 5 to 10 minutes. Before aprocessing cycle ends, the commerce server simply logs 706 everyincoming request as described above.

In step 707, a determination is made as to whether a processing cycle iscomplete. After a processing cycle is finished, in step 708, thecommerce server authorizes whether the e-coupon should be distributed.The commerce server checks every candidate seller profile anddistributes e-coupons for a seller if there are enough pending requestsin the seller profile. This process consists of the following threesteps.

(1) The commerce server estimates the overall e-coupon effectivenessratio, denoted as r, for every candidate seller using the followingformula:

$r = {\frac{1}{N}{\sum\limits_{n = 1}^{N}\frac{r_{n}}{c_{n}}}}$where N is the number of pending requests and

$\frac{r_{n}}{c_{n}}$is the redeem probability for the n^(th) pending request to thecandidate seller. That is, r_(n) is the e-coupon effectiveness ratio forthe mobile user whose request is the n^(th) pending request to thecandidate seller, and c_(n) is the number of candidate sellers for thisrequest.

(2) The commerce server calculates the best initial threshold θ(explained in next section) based on the pre-advertising profit margin,the overall e-coupon effectiveness ratio, and the advertising fee forevery candidate seller, which statistically guarantees every candidateseller to make maximum profit. If N≧θ, which means the number of pendingrequests equals or exceeds the initial threshold, the commerce serverdistributes e-coupons using SMS to every mobile user who has a pendingrequest in the candidate seller profile.

(3) The commerce server has all sellers with N<θ go through an optimalconsolidation process (explained in next section). The objective herebyis to maximize the number of candidate sellers that can finallydistribute e-coupons by selectively removing candidate sellers (thus thee-coupon effectiveness ratio for remaining candidate sellers can beimproved due to less competition and hence their initial thresholds canbe reduced to a new optimal threshold). This ensures that theconditional e-coupon service provider can make maximum revenue and amaximum number of e-coupon requests from mobile users can be satisfied.

Once it is determined that an e-coupon is to be distributed, thecommerce server generates a serial number as well as a redeemconfirmation number for the e-coupon. THe e-coupon is then distributedwith the serial number included to all mobile users who requested it,and a notification message that includes the serial number and redeemconfirmation number is sent to the corresponding candidate seller viathe seller instant contact address.

After receiving the desired e-coupons, a mobile user can go to theissuing candidate seller and redeem the e-coupon. The mobile user hasvarious methods to confirm she has redeemed the e-coupon in order to getback her quota. One method is to request a redeem confirmation numberfrom the candidate seller for a sale/visit, which is reported back tothe profile proxy server by the mobile user. Another method is tocontact the profile proxy server using the mobile user's wireless devicewhen she is physically in the issuing candidate seller's store. In thiscase, the seller location is automatically submitted to the profileproxy server, which serves as the evidence that the mobile user wasattracted to the candidate seller by the e-coupon. The quota systemdiscussed earlier provides an incentive to the mobile user to reportback. There can also be other methods to provide an incentive for suchreporting, such as the provision of discounts or bonus points.

FIG. 8 shows an alternative embodiment. A local commerce server receivesa request to browse at least an e-coupon, and upon receiving a requestfor a particular e-coupon, the system authorizes whether the e-couponshould be distributed. A processing cycle begins in step 801. In step802, it is determined whether the system has received a request tobrowse at least an e-coupon. If the system receives a request, thelocation of the mobile device is received with the request in step 803.An exemplary embodiment entails the local commerce server receiving thecurrent location of the mobile user in connection with the request tobrowse because the mobile electronic device automatically inserts thelocation data as a header parameter in the outgoing request to browsemessage. In step 804, a plurality of sellers local to the location ofthe mobile user and meeting the request criteria, such as for “grocery”or a particular seller, is determined. In addition, a plurality of thecorresponding e-coupons available for each seller is determined. Thee-coupon availability data is subsequently provided to the mobile userin step 805.

In step 806, it is determined whether the system has received a requestfor a particular e-coupon from the set of e-coupons provided in step805. If the request for a particular e-coupon is received in 806, theconditional e-coupon profile proxy server, in step 807, immediatelysends a response message back to the mobile user, which shows theremaining quota and estimated time to receive e-coupons (it is possiblethat the mobile user may not receive any e-coupons). The conditionale-coupon profile proxy server then passes the request message to theconditional e-coupon commerce server, along the request time, thelocation of the mobile user, and the instant contact address of themobile user. In step 808, the request for the e-coupon is logged withinthe applicable mobile user and seller profiles. A log of this request iscreated because the system does not authorize distribution of e-couponsuntil the end of the processing cycle. Such a processing cycle couldlast for any predetermined amount of time and could vary among sellers,particular types of e-coupons, or even among varying e-coupons of a sameseller.

In one embodiment, in step 808, to log a request received from a mobiledevice, the conditional e-coupon system creates a record in the profileof the mobile user, which contains the request time and the IDs of allthe sellers requested. Next, the system will decrease the e-coupon quotafield 622 c in the mobile user profile. THe system then creates a recordin the profile of every seller, which contains the request time and theID of the mobile user. Finally, the system increases the estimatednumber of redeems field 633 k. The value of the increment could bechosen to equal one divided by the number of sellers in the request.Therefore, if a mobile user requested a particular e-coupon from aparticular seller name and if there were two stores of the seller namelocal to the location of the mobile user, the estimated number ofredeems field 633 k would be increased by 0.5 or one divided by twosellers in the request.

In step 809, the system determines whether the processing cycle has beencompleted. If the processing cycle has not been completed, the systemagain returns to step 802 and determines whether a request to browse atleast an e-coupon has been received. However, if the processing cyclehas been completed, the system authorizes whether the e-coupon should bedistributed 810.

FIG. 9 shows the steps for the system to authorize whether an e-couponshould be distributed and subsequent action by the system. In step 901,the processing cycle has ended. In one example, moving to step 902, thesystem determines whether the number of pending requests in the sellerprofile is greater than or equal to an initial threshold value. Asdisclosed above, the initial threshold value is calculated at the end ofthe processing cycle.

One method of calculation of the initial threshold is to divide anadvertising fee for the e-coupon by a product of the estimated number ofredeems field 633 k in the seller profile times a pre-advertising profitmargin for the e-coupon. The initial threshold value is then compared tothe number of pending requests 633 i in the profile of the particularseller in question, as shown in step 902, to authorize whether thee-coupon should be distributed.

Only upon determining that the number of pending requests is greaterthan or equal in value to the initial threshold value do the e-couponsget distributed, as shown in step 903, to mobile users who requested thee-coupon in the preceding processing cycle. If the system determinesthat the number of pending requests in the seller profile is less thanthe initial threshold value, the e-coupons are not distributed as shownin step 904. Subsequent to step 903 or 904, the system could send amessage to the mobile user to inform the mobile user that the e-couponcould not be distributed or the system could provide other options.

In another embodiment, in step 905, an optimal consolidation process isapplied to the sellers whose e-coupons are not distributed in step 904.The optimal consolidation process is discussed below. Then the systemdetermines whether the number of pending requests is greater than orequal in value to an optimal threshold value as shown in step 906. Ifthe number of pending requests is greater than or equal to the optimalthreshold, the e-coupon is distributed to the mobile user as shown instep 903. However, if the number of pending requests is less than theoptimal threshold, the e-coupon is not distributed as shown in step 907.The optimal threshold is calculated in the same manner, but only afterthe optimal consolidation process, discussed below, is applied.

The essence of the conditional e-coupon service is to let theconditional e-coupon service provider automatically negotiate a“wholesale” deal for a group of mobile users, who may not know eachother, with a seller provided that the seller can make profit from this“wholesale” transaction. The conditional e-coupon service providercharges a commission (the advertising fee) from the seller once a“wholesale” deal is offered (i.e., e-coupons are distributed).

Conventional coupon distribution is a special case for the conditionale-coupon service. If a seller wants e-coupons to be distributedunconditionally, the seller could simply set the pre-advertising profitmargin to be infinity.

The following sections only discuss conceptually how the e-coupons aredistributed, and how the e-coupon distribution notification messages aresent to sellers. A significant cost as well as high effectiveness forwireless advertising is expected. The conditional e-coupon serviceprovider has to collect advertising fees for every e-coupondistribution, because it is very difficult to identify if the deal ismade solely due to the e-coupon. By contrast, it is relatively easy fora seller to verify that some extra traffic is indeed brought in bye-coupons. E-coupon distribution may be mapped to the cell broadcastingoperation in GSM networks that support cell broadcast short messageservice. It may also be carried out using point-to-point short messageservice. If the former method is used, the distribution cost isindependent of the number of mobile users. In this case, the conditionale-coupon service provider may charge a flat advertising price for eachdistribution. If the latter method is used, the conditional e-couponservice provider may have to adopt an advertising price that increasesas the number of mobile users increases.

Now an optional consolidation process will be discussed from amathematical model to proposed implementation. The following models andcalculations quantitatively demonstrate that the conditional e-couponservice can be optimized for all involved parties—sellers can makemaximum profit by adopting the best threshold values, the conditionale-coupon service provider can make maximum revenue, and mobile users canreceive a maximum number of e-coupons (by running an optimalconsolidation process in the conditional e-coupon system.)

Mathematical Model

One mathematical model for calculation of a threshold is describedherein. A conditional e-coupon service provider will charge anadvertising price p against a seller each time an e-coupon for theseller is distributed. Three typical advertising price plans will beanalyzed below. They are (a) a flat advertising price plan (p isindependent of N, which is also the number of mobile users who willreceive e-coupons if e-coupons are distributed), (b) a proportionaladvertising price plan (p is proportional to N), and (c) a linearadvertising price plan (a combination of a flat and a proportionaladvertising fee), p is denoted as p(N).

There are N(t) pending requests at the seller during a processing cycle[t, t+T), where N(t) is a random process defined on {0, Z⁺} and T is thelength of a processing cycle, such as 5 minutes or 10 minutes. It shouldbe noted that N(t) might not necessarily be stationary. Nonetheless,N(t) will be denoted as N hereafter for this example, since it will beshown that the best threshold is independent of the statisticaldistribution function of N(t).

The goods or service offered by the seller to one mobile user has apre-advertising profit margin m, which is the difference of the offeringprice minus the cost (excluding the advertising price p). m is fixed inevery processing cycle.

The estimated number of redeems is denoted as M. This number is not useddirectly in the calculation. Instead, a new notation r called thee-coupon effectiveness ratio, which is equal to M/N, is introduced. Theeffectiveness ratio r essentially is a random variable. It should benoted that r might vary significantly from one processing cycle toanother, because it is dependent of N and many competition factors thatare subject to large fluctuations.

A threshold θ is defined with regard to the number of pending requestsN. That is, if N≧θ, the conditional e-coupon commerce server shoulddistribute the e-coupon to the N mobile users who sent in pendingrequests for the e-coupon. The reason the threshold θ is not definedwith regard to the estimated number of redeems M is because N could bemodeled by a Poisson distribution, while modeling M is more difficult.

The extra revenue that the conditional e-coupon service can generate forthe seller during a processing cycle is a function of the threshold θ,f(θ)=mrNu(N−θ)where, u(x) is the step function,

${u(x)} = \left\{ \begin{matrix}1 & {{{for}\mspace{14mu} x} \geq 0} \\0 & {{{for}\mspace{14mu} x} < 0}\end{matrix} \right.$

The advertising cost that is charged by the conditional e-coupon serviceprovider for distributing an e-coupon in a processing cycle is also afunction of the threshold θ,c(θ)=p(N)u(N−θ)

The expectation of the extra profit that the seller can make from theconditional e-coupon service in a processing cycle is given by,

${P(\theta)} = {{E\left( {{f(\theta)} - {c(\theta)}} \right)} = {\sum\limits_{n = \theta}^{\infty}{\left( {{mrn} - {p(n)}} \right){\Pr\left( {N = n} \right)}}}}$where, Pr(N=n) is the probability of N=n. It is assumed that Pr(N=n)<0for any n.

The objective for a seller is to find the best threshold θ such that theseller can maximize the expectation of the extra profit from theconditional e-coupon service. This is equivalent to maximizing theexpectation of the extra conditional e-coupon profit in any processingcycle. That is, Max{P(θ)}.

The seller does not solve the maximization problem alone, because theeffective ratio r varies in every processing cycle. Alternatively, theseller only gives the pre-advertising profit margin m in its sellerprofile, from which the conditional e-coupon controller determines thebest threshold and authorizes distribution for the seller accordingly.

The objective for the conditional e-coupon service provider is to findthe best advertising price p such that the conditional e-coupon serviceprovider can maximize the conditional e-coupon revenue from all sellers,subject to the sellers all adopting best thresholds respectively. Forexample, this objective can be addressed by maximizing the conditionale-coupon revenue that the conditional e-coupon service provider earnsfrom one seller in every processing cycle.

The objective for mobile users is to maximize the ratio of the number ofreceived e-coupons versus the number of requests, subject to allcandidate sellers adopting their best thresholds respectively. The sameoptional consolidation process done by the conditional e-coupon serviceprovider achieves this objective; this maximizes the number of sellersthat can eventually meet the threshold requirement and thus distributetheir e-coupons to mobile users.

Best Threshold—Flat Advertising Price Plan

Under the flat advertising price plan p(N)=p_(o), the best threshold fora seller is equal to p₀/mr, no matter what kind of statisticaldistribution N obeys, where x is the smallest integer that is no smallerthan x.

Let θ_(m) denote the best threshold and let P(θ_(m)) denote the maximumconditional e-coupon profit. That is,

${P\left( \theta_{m} \right)} = {{{Max}\left\{ {P(\theta)} \right\}} = {\sum\limits_{n = \theta_{m}}^{\infty}{\left( {{mrn} - p_{o}} \right){\Pr\left( {N = n} \right)}}}}$Assume θ_(m)=θ′<p_(o)/mr, we have

${P\left( \theta_{m} \right)} = {{\sum\limits_{n = \theta^{\prime}}^{{\lceil\frac{p_{0}}{mr}\rceil} - 1}{\left( {{mrn} - p_{0}} \right){\Pr\left( {N = n} \right)}}} + {\sum\limits_{n = {\lceil\frac{p_{0}}{mr}\rceil}}^{\infty}{\left( {{mrn} - p_{0}} \right){\Pr\left( {N = n} \right)}}}}$

Because the first term in the right side of the above equation is alwaysnegative, we have,

${{P\left( \theta_{m} \right)} < {\sum\limits_{n = {\lceil\frac{p_{0}}{mr}\rceil}}^{\infty}{\left( {{mrn} - p_{0}} \right){\Pr\left( {N = n} \right)}}}} = {P\left( \left\lceil \frac{p_{0}}{mr} \right\rceil \right)}$This is contradictory to the assumption that P(θ_(m)) is the maximumconditional e-coupon profit, so it has to be θ_(m)≧p_(o)/mr.

Similarly, assume θ_(m)=θ′>p_(o)/mr, we have

$\begin{matrix}{{P\left( \theta_{m} \right)} = {{\sum\limits_{\theta^{\prime}}^{\infty}{\left( {{mrn} - p_{0}} \right){\Pr\left( {N = n} \right)}}} <}} \\{{\sum\limits_{n = {\lceil\frac{p_{0}}{mr}\rceil}}^{\theta^{\prime} - 1}{\left( {{mrn} - p_{0}} \right){\Pr\left( {N = n} \right)}}} + {\sum\limits_{\theta^{\prime}}^{\infty}{\left( {{mrn} - p_{0}} \right){\Pr\left( {N = n} \right)}}}} \\{= {P\left( \left\lceil \frac{p_{0}}{mr} \right\rceil \right)}}\end{matrix}$This is because the first term in the second row of the above equationis always positive. This is also contradictory to the assumption thatP(θ_(m)) is the maximum conditional e-coupon profit, so it has to bethat θ_(m)≦p_(o)/mr.

Combining these results, we have θ_(m)=p_(o)/mr. It should be noted thatthe function form of Pr(N=n) is not needed. That is, the best thresholdθ_(m) does not depend on the statistical distribution of N.

The independence between the best threshold θ_(m) and the statisticaldistribution of N is a feature for the conditional e-coupon service,which makes it easy for the conditional e-coupon controller to choosethe best threshold that is valid all the time for every seller.

Best Threshold—Proportional Advertising Price Plan

Under the proportional advertising price plan p(N)=p₁N, the bestthreshold for a seller is equal to 1 if p₁<mr, or infinity if p₁≧mr.

Plugging p(N)=p₁N into P(θ), we have,

${P(\theta)} = {\sum\limits_{n = \theta}^{\infty}{\left( {{mr} - p_{1}} \right){{nPr}\left( {N = n} \right)}}}$Note that n Pr(N=n)≧0 for any n. If p₁≧mr, i.e., mr−p₁≦0, we haveP(θ)≦0. In this case, the maximum conditional e-coupon profit is zeroonly if θ→∞, which means the seller cannot issue e-coupons no matter howmany requests are pending.

If p₁<mr, i.e., mr−p₁>0, we have(mr−p ₁)nPr(N=n)>0for ever n. Clearly, Max {P(θ)}=P(1), which means the seller shouldissue e-coupons as long as there are pending requests.

Similarly, the function form of Pr(N=n) is not needed. That is, the bestthreshold θ_(m) doesn't depend on the statistical distribution of N.

Best Threshold—Linear Advertising Price Plan

Under the linear advertising price plan p(N)=p₀+p₁N, the best thresholdfor a seller is equal to

$\left\lceil \frac{p_{0}}{{mr} - p_{1}} \right\rceil$if p₁<mr, or infinity if p₁>mr.

Plugging p(N)=p₀+p₁N into P(θ), we have,

${P(\theta)} = {\sum\limits_{n = \theta}^{\infty}{\left( {{\left( {{mr} - p_{1}} \right)n} - p_{0}} \right){\Pr\left( {N = n} \right)}}}$

If p₁≧mr, i.e., mr−p₁≦0, we have((mr−p ₁)n−p ₀)Pr(N=n)≦0for every n. Hence, P(θ)≦0. In this case, the maximum conditionale-coupon profit is zero when θ→∞, which means the seller cannot issuee-coupons no matter how many requests are pending.

If p₁<mr, i.e., mr−p₁>0, following the same proving method used in thecalculation based upon the Flat Advertising Price Plan above, the bestthreshold is equal to

$\left\lceil \frac{p_{0}}{{mr} - p_{1}} \right\rceil.$

Again, the function form of Pr(N=n)is not needed. That is, the bestthreshold doesn't depend on the statistical distribution of N.

From the above calculations, it can be seen that the best thresholdθ_(m) is always independent of the statistical distribution of N. Thisis a nice feature, which makes it very easy for the commerce server tochoose the best threshold without a statistical model for N.

A “conditional e-coupon profit vs. threshold” curve for a participatingseller is shown in FIG. 10, where 21 curves are plotted from top tobottom, corresponding to the cases that N obeys a Poisson distributionwith an arriving rate λ varying from 25 to 5. The flat advertising pricep is 2.00, the pre-advertising profit margin m is 2.00, and theeffectiveness ratio r is 0.05. FIG. 10 shows that, no matter how λchanges, the best threshold θ_(m) corresponding to the maximumconditional e-coupon profit P(θ_(m)) is always equal to 20.

Maximum Conditional E-Coupon Profit

Another property for the best threshold is the maximum conditionale-coupon profit recited herein. When choosing the best threshold θ_(m),a participating seller can earn a positive maximum conditional e-couponprofit P(θ_(m)), no matter how expensive the advertising price p(N) is.

-   -   It should be noted that the maximum conditional e-coupon profit        P(θ_(m)) does depend on the statistical distribution of N,        although the best threshold θ_(m) does not. If N obeys a Poisson        distribution with an arriving rate λ, where Pr(N) is the Poisson        probability distribution function with an arriving rate of λ,        i.e.,

${\Pr\left( {N = n} \right)} = {\frac{\lambda^{n}}{n!}{\mathbb{e}}^{- \lambda}}$Under the flat advertising price plan the maximum conditional e-couponprofit P(θ_(m)) is:

${P\left( \theta_{m} \right)} = {{{mr}\;\lambda\;{\Pr\left( {N \geq {\left\lceil \frac{p_{0}}{mr} \right\rceil - 1}} \right)}} - {p_{0}{\Pr\left( {N \geq \left\lceil \frac{p_{0}}{mr} \right\rceil} \right)}}}$Under the proportional advertising price plan with p₁<mr, the maximumconditional e-coupon profit is given by:P(θ_(m))=(mr−p ₁)λAnd under the linear advertising price plan with p₁<mr, the maximumconditional e-coupon profit is given by:

${P\left( \theta_{m} \right)} = {{\left( {{mr} - p_{1}} \right)\lambda\;{\Pr\left( {N \geq \left\lceil \frac{p_{0}}{{mr} - p_{1}} \right\rceil} \right)}} - {p_{0}{\Pr\left( {N \geq \left\lceil \frac{p_{0}}{{mr} - p_{1}} \right\rceil} \right)}}}$

A “maximum conditional e-coupon profit vs. price” curve for aparticipating seller is shown in FIG. 11, where N obeys a Poissondistribution with an arriving rate λ=35. The pre-advertising profitmargin m is 2.00 and the effectiveness ratio r is 0.05. It can be seenthat the maximum conditional e-coupon profit P(θ_(m)) for the sellerwill always be positive, although the profit approaches to zero rapidlyas the advertising price p increases. Pursuant to these equations, aseller will make money under any circumstances in a statistical sense.

Upper Bound Of Price

If a flat advertising price plan is adopted, there exists an upper boundof the advertising price p_(o) for the conditional e-coupon serviceprovider to charge every seller for each distributed e-coupon. Theconditional e-coupon service provider can make the maximum conditionale-coupon revenue from a seller if the advertising price p_(o) is set tobe the upper bound, and there is no advantage in using a higher price.FIG. 12 demonstrates this correlation between the maximum conditionale-coupon revenue and the upper bound of the advertising price p_(o).

In FIG. 12, the line 1202 on the top shows that the ideal conditionale-coupon revenue that a conditional e-coupon service provider can earnfrom every distributed e-coupon for a seller increases linearly as theadvertising price p_(o) increases. However, line 1202 is the ideal case,assuming the seller chooses an unconditional e-coupon distributionscheme. If the seller chooses the conditional e-coupon service with thebest threshold, the best threshold increases rapidly as the advertisingprice increases. This causes the probability of distributing e-couponsfor the seller to decrease rapidly, which is shown by line 1203.Therefore, there exists the maximum conditional e-coupon revenue for theconditional e-coupon service provider to earn from the seller at someprice point, as shown by line 1204. This advertising price is the upperbound price, because even if the conditional e-coupon service providersets a higher price, he cannot earn more conditional e-coupon revenue.The value of the upper bound advertising price depends on thestatistical distribution of N.

If a proportional advertising price plan is adopted, there exists anupper bound for the unit advertising price p₁ that the conditionale-coupon service provider charges a seller for every e-coupon in eache-coupon distribution. Clearly, the upper bound is equal to mr. Theconditional e-coupon service provider can set a unit price close to theupper bound but cannot make it equal to the upper bound, because thestore cannot make profit at all in this scenario.

If a linear advertising price plan is adopted, there exists an upperbound for the flat advertising price p₀ as well as an upper bound forthe unit advertising price p₁. The upper bound for the unit advertisingprice p₁ is equal to mr. The upper bound for the flat advertising pricep₀ is dependent of the unit advertising price p₁ as well as thedistribution function of N.

In one example, a conditional e-coupon service provider sets theadvertising price below the upper bound in order to expand the base ofsellers and to compete with other conditional e-coupon serviceproviders.

Optimal Consolidation

At the end of every processing cycle, the commerce server may find thatsome sellers have insufficient pending request to warrant an e-coupondistribution. This does not mean that all of these sellers cannot issuetheir e-coupons. Some of them may become eligible after others aredeclared hopeless by the commerce server, because the overall e-couponeffectiveness ratio of the remaining sellers can increase significantlydue to less competition after others quit the game. Clearly, there is anoptimization problem—the commerce server must follow an optimalprocedure to selectively remove sellers from the candidate sellers, suchthat the number of remaining sellers that eventually become eligible toissue e-coupons is maximized. This optimal consolidation processguarantees mobile users receive a maximum number of e-coupons, providedthat all issuing stores can make maximum profit. It also guarantees theconditional e-coupon service provider can make maximum revenue after theadvertising price is determined.

Assume that N e-coupon request arrive at the commerce server in aprocessing cycle. Each of them has an individual redeem probability ofr_(n), n=1, 2, . . . , N, which are estimated from the quota system inthe last quota reset cycle. They are pending at L sellers with variouscompetition factors d_(ln), where d_(ln) is the competition factor forthe n^(th) request pending at the l^(th) store. It can take either oftwo values. One is zero, which means the n^(th) request is not a pendingrequest to the l^(th) store. The other is equal to one divided by c_(n),which is the number of candidate sellers for the l^(th) request. For thel^(th) store, there are in total N_(l) pending requests. We have1≦c_(n)≦L. Without loss of generality, we assume none of the sellers hasa sufficient number of pending requests that can warrant an e-coupondistribution in the beginning of the consolidation process. We define aneligibility distance D_(l)(i), l=1, 2, . . . , L, for every seller,

${D_{l}(i)} = {p_{l} - {m{\sum\limits_{n = 1}^{N}{r_{n}d_{\ln}}}}}$where i is the iteration index.

Because derivation of a globally optimal consolidation algorithm is adifficult problem, a sub-optimal algorithm is given below.

-   (1) The commerce server calculates the eligibility distance for    every remaining seller at Step i and finds the maximum eligibility    distance Max{D_(l)(i)};-   (2) If Max{D_(l)(i)} ≦0 or none is remaining, the commerce server    stops the consolidation process and distributes e-coupons for all    remaining sellers, if there are any remaining sellers. Otherwise,    the algorithm continues.-   (3) If there is only one seller associated with Max{D_(l)(i)}, this    seller is declared hopeless and removed from the candidate sellers.    Otherwise, the commerce server randomly chooses one of such sellers    and declares it hopeless.-   (4) i=i+1, go to (1).

FIGS. 13A-13E show an example of how a mobile user might interact withon embodiment of the present invention. A mobile user drives by a fastfood restaurant, such as Fast Food, Inc. (fictional name), and decidesto get a meal. Fast Food, Inc. is a seller that maintains e-couponsthrough the conditional e-coupon service provider. As shown in FIG. 13A,the mobile user can make a request to the conditional e-coupon serviceprovider to browse the e-coupons available for Fast Food, Inc. byinputting the seller name, as shown by reference character 1302. In thisexample, the mobile user can make the request on a Personal DigitalAssistant (PDA) device 1301.

As disclosed above in one embodiment, the present invention receives therequest to browse e-coupons available for Fast Food, Inc., determines aplurality of Fast Food, Inc. locations (or stores) that are local tothis mobile user and a plurality of corresponding e-coupons from eachFast Food, Inc. location. As shown in FIG. 13B, a mobile user receivesthe e-coupon availability data of local Fast Food, Inc. and e-couponsavailable for each. The first screen on the PDA could show the FastFood, Inc. that is physically closest to the mobile user. In this case,the PDA has received a location at 110 Pine St., as shown by referencenumeral 1303, and all the corresponding e-coupons available for thatparticular Fast Food, Inc., as shown by reference numeral 1304.

FIG. 13C represents what the mobile user may see on a separate page. Thelocation of this Fast Food, Inc. at 2345 N. Stein Rd. 1305 could be thesecond closest Fast Food, Inc. in physical location to the mobile user.A listing, as shown by reference numeral 1306, of all availablee-coupons for that particular Fast Food, Inc. location is also shown.Multiple locations of various locations could be listed on one screen.

Should the mobile user choose a particular e-coupon, such as thee-coupon for a Nuggets from the 110 Pine St. Fast Food, Inc. location,the present invention would receive the request for the e-coupon andthen authorize whether the e-coupon should be distributed as disclosedabove. FIG. 13D and 13E show two possible screens that may be seen fromthe authorization step of the present invention.

In the case that the e-coupon is distributed, FIG. 13D shows receipt, asshown by reference numeral 1307, of the requested e-coupon from theparticular Fast Food, Inc. location. With the e-coupon, the mobile usercan redeem the e-coupon at the particular location and receive thedesired Nuggets at the e-coupon price or discount.

In the case that the e-coupon is not distributed, FIG. 13E shows anotification message, as shown by reference numeral 1310, stating thatthe e-coupon was not available for that request. Again, other optionsmay be available, such as a prompt to request the same e-coupon again,as shown by reference numeral 1311, and a prompt to browse for othere-coupons, as shown by reference numeral 1312.

As shown in FIGS. 13D and 13E, some examples of further options thesystem could provide are an option to receive driving directions,reference numeral 1308, to the seller, request the same e-coupon,reference numeral 1311, and an option to browse for other e-coupons,reference numerals 1309 and 1312. In addition, the system couldautomatically log a request for the same e-coupon during a secondprocessing cycle if the first processing cycle ended without adistribution of the desired e-coupon. This automatic feature of thepresent invention could be a field in a mobile user or seller profile,such as field 622 f or 633 l.

While the invention has been described with respect to specific examplesincluding presently preferred modes of carrying out the invention, thoseskilled in the art will appreciate that there are numerous variationsand permutations of the above described systems and techniques that fallwithin the spirit and scope of the invention as set forth in theappended claims.

1. An e-coupon distribution method for distributing e-coupons redeemablefor value in the purchase of goods or services from a seller,comprising: receiving a request from a mobile electronic device of auser to browse at least one e-coupon; receiving location information forthe requesting mobile electronic device; determining at least one sellerlocal to the location of the mobile electronic device and at least onecorresponding e-coupon available from said at least one seller; sendinge-coupon availability data to the mobile electronic device; receiving arequest for at least one e-coupon of a seller from the mobile electronicdevice; determining whether to provide said seller's e-coupon to themobile electronic device in response to the request by determining thenumber of pending mobile requests during a processing cycle; calculatingan initial threshold number of requests for the processing cycle basedat least in part on the seller's margin for the goods or servicesassociated with the e-coupon and estimated rates of e-coupon redemption,authorizing the provision of said e-coupon when the number of pendingmobile requests during the processing cycle is equal to or greater thanthe threshold number; and sending said e-coupon to the mobile electronicdevice upon authorization; wherein an advertising fee is charged for thee-coupon and said initial threshold is determined by dividing theadvertising fee by a product of the estimated rate of e-couponredemption times the seller's margin for the goods or servicesassociated with the e-coupon.
 2. An e-coupon distribution method fordistributing e-coupons redeemable for value in the purchase of goods orservices from a seller, comprising: (i) maintaining a mobile userprofile and seller profile data in database memory; (ii) receive arequest for at least one e-coupon from a mobile electronic device of auser; (iii) receiving location information for the requesting mobileelectronic device; (iv) determining a seller local to the location ofthe mobile electronic device; (v) determining an initial thresholdnumber of requests for the seller based on the seller's margin for thegoods or services associated with the e-coupon, the advertising feecharged for the distribution of the e-coupon, and estimated rates ofe-coupon redemption; (vi) determining whether the number of pendingrequests for said e-coupon is greater than or equal to the initialthreshold; and (vii) when the number of pending requests for saide-coupon is greater than or equal to the initial threshold, sending saide-coupon to the mobile electronic device; further comprising, when thenumber of pending requests for said e-coupon is determined to be lessthan the seller's initial threshold, the following additional steps:(viii) applying an optimizing consolidation process to the sellerincluding eliminating at least one other seller to obtain increasedestimated rates of e-coupon redemption and using such increasedestimated rates of e-coupon redemption to determine an optimizedthreshold number; (ix) determining whether the number of pendingrequests for said e-coupon is greater than or equal to the optimizedthreshold number; and (x) when the number of pending requests for saide-coupon is greater than or equal to the optimized threshold number,sending said e-coupon to the mobile electronic device.
 3. The e-coupondistribution method of claim 2, further comprising, when in step (ix)the number of pending requests for said e-coupon is determined to beless than the optimized threshold number, the additional step of sendinga notification to the mobile user that no e-coupon for the seller willbe provided.
 4. The e-coupon distribution method of claim 3 furthercomprising logging said request for the e-coupon from the seller in saiduser profile and said seller profile.
 5. An e-coupon distribution methodfor distributing e-coupons redeemable for value in the purchase of goodsor services from a seller, comprising: receiving a request from a mobileelectronic device of a user to browse at least one e-coupon; receivinglocation information for the requesting mobile electronic device;determining at least one seller local to the location of the mobileelectronic device and at least one corresponding e-coupon available fromsaid at least one seller; sending e-coupon availability data to themobile electronic device; receiving a request for at least one e-couponof a seller from the mobile electronic device; determining whether toprovide said seller's e-coupon to the mobile electronic device inresponse to the request by determining the number of pending mobilerequests during a processing cycle; calculating an initial thresholdnumber of requests for the processing cycle based at least in part onthe seller's margin for the goods or services associated with thee-coupon and estimated rates of e-coupon redemption, authorizing theprovision of said e-coupon when the number of pending mobile requestsduring the processing cycle is equal to or greater than the thresholdnumber; and sending said e-coupon to the mobile electronic device uponauthorization; maintaining mobile user profile data and seller profiledata in database memory; maintaining in the mobile user profile a quotaof e-coupons the user is allowed to receive; receiving a notificationthat said mobile electronic device is at the location of said seller;receiving said seller location information; determining whether saide-coupon sent to the mobile user has been redeemed; and upon determiningsaid e-coupon has been redeemed, increasing the quota of e-coupons byone in the mobile user profile.
 6. An e-coupon distribution method fordistributing e-coupons redeemable for value in the purchase of goods orservices from a seller, comprising: receiving a request from a mobileelectronic device of a user to browse at least one e-coupon; receivinglocation information for the requesting mobile electronic device;determining at least one seller local to the location of the mobileelectronic device and at least one corresponding e-coupon available fromsaid at least one seller; sending e-coupons availability data to themobile electronic device; receiving a request for at least one e-couponof a seller from the mobile electronic device; determining whether toprovide said seller's e-coupon to the mobile electronic device inresponse to the request by determining the number of pending mobilerequests during a processing cycle; calculating an initial thresholdnumber of requests for the processing cycle based at least in part onthe seller's margin for the goods or services associated with thee-coupon and estimated rates of e-coupon redemption, authorizing theprovision of said e-coupon when the number of pending mobile requestsduring the processing cycle is equal to or greater than the thresholdnumber; and sending said e-coupon to the mobile electronic device uponauthorization; wherein the step of determining whether to provide saidseller's e-coupon to the mobile electronic device in response to themobile request further comprises: determining the sellers having pendingnumbers of requests for an e-coupon that are not greater than or equalto the initial threshold calculated for them, and applying an optimizingconsolidation process to all sellers with insufficient pending requests,including eliminating at least one such seller to obtain increasedestimated rates of e-coupon redemption, recalculating using suchincreased estimated rates of e-coupon redemption to determine anoptimized threshold number, and authorizing the provision of saide-coupon when the number of pending mobile requests during theprocessing cycle is greater than or equal to the optimized thresholdnumber.
 7. An e-coupon distribution system for distributing e-couponsredeemable for value in the purchase of goods or services from a seller,comprising: a memory for storing mobile user profile data and sellerprofile data; a profile proxy server to receive a request to browse atleast one e-coupon from a mobile electronic device of a user; saidprofile proxy server to receive a location of the requesting mobileelectronic device; said profile proxy server to determine a at least oneseller local to the location of the mobile electronic device and atleast one corresponding e-coupon available from said sellers; saidprofile proxy server to send e-coupon availability data to the mobileelectronic device; said profile proxy server to receive a request for atleast one e-coupon of a seller from the mobile electronic device; acommerce server to receive said request from said profile proxy server;said commerce server to log said request in said mobile user profile andsaid seller profile; said commerce server to determine whether toprovide said seller's e-coupon to the mobile electronic device inresponse to the request by determining the number of pending mobilerequests during a processing cycle; calculating an initial thresholdnumber of requests for the processing cycle based at least in part onthe seller's margin for the goods or services associated with thee-coupon, and estimated rates of e-coupon redemption; at the end of theprocessing cycle, said commerce server to authorize the provision ofsaid e-coupon when the number of pending mobile requests during theprocessing cycle is equal to or greater than the threshold number; andsaid commerce server to send said e-coupon to the mobile electronicdevice responsive to said authorizing step; wherein an advertising feeis charged for the e-coupon distribution and said initial threshold isdetermined by dividing the advertising fee by a product of the estimatedrate of e-coupon redemption times the seller's e-coupon margin for thegoods or services associated with the e-coupon.
 8. The e-coupondistribution system of claim 7 wherein upon receiving the request for atleast one e-coupon from the mobile electronic device, said profile proxyserver sends a reply message to the mobile electronic device.
 9. Thee-coupon distribution system of claim 8 wherein said reply messagecomprises a quota of e-coupons available to the user and an expectedtime to receive said e-coupon.
 10. The e-coupon distribution system ofclaim 9 wherein said commerce server logs said request in said mobileuser profile and said seller profile, and the commerce server: creates amobile user pending request record in the mobile user profile; decreasesthe quota of e-coupons in the mobile user profile by one; creates aseller pending request record in the seller profile; and increases theestimated number of coupons provided to users for redemption in theseller profile.
 11. An e-coupon distribution system for distributinge-coupons redeemable for value in the purchase of goods or services froma seller, comprising: a memory for storing mobile user profile data andseller profile data; a profile proxy server to receive a request tobrowse at least one e-coupon from a mobile electronic device of a user;said profile proxy server to receive a location of the requesting mobileelectronic device; said profile proxy server to determine a at least oneseller local to the location of the mobile electronic device and atleast one corresponding e-coupon available from said sellers; saidprofile proxy server to send e-coupon availability data to the mobileelectronic device; said profile proxy server to receive a request for atleast one e-coupon of a seller from the mobile electronic device; acommerce server to receive said request from said profile proxy server;said commerce server to log said request in said mobile user profile andsaid seller profile; said commerce server to determine whether toprovide said seller's e-coupon to the mobile electronic device inresponse to the request by determining the number of pending mobilerequests during a processing cycle; calculating an initial thresholdnumber of requests for the processing cycle based at least in part onthe seller's margin for the goods or services associated with thee-coupon, and estimated rates of e-coupon redemption; at the end of theprocessing cycle, said commerce server to authorize the provision ofsaid e-coupon when the number of pending mobile requests during theprocessing cycle is equal to or greater than the threshold number, andsaid commerce server to send e-coupon to the mobile electronic deviceresponsive to said authorizing step; said profile proxy server toreceive a notification that said mobile electronic device is at thelocation of said seller; said profile proxy server to receive saidseller location information; said commerce server to determine whethersaid e-coupon sent to the mobile user has been redeemed; and upondetermining said e-coupon has been redeemed, said commerce server toincrease the quota of e-coupons by one in the mobile user profile. 12.An e-coupon distribution system for distributing e-coupons redeemablefor value in the purchase of goods or services from a seller,comprising: a memory for storing mobile user profile data and sellerprofile data; a profile proxy server to receive a request to browse atleast one e-coupon from a mobile electronic device of a user; saidprofile proxy server to receive a location of the requesting mobileelectronic device; said profile proxy server to determine a at least oneseller local to the location of the mobile electronic device and atleast one corresponding e-coupon available from said sellers; saidprofile proxy server to send e-coupon availability data to the mobileelectronic device; said profile proxy server to receive a request for atleast one e-coupon of a seller from the mobile electronic device; acommerce server to receive said request from said profile proxy server;said commerce server to log said request in said mobile user profile andsaid seller profile; said commerce server to determine whether toprovide said seller's e-coupon to the mobile electronic device inresponse to the request by determining the number of pending mobilerequests during a processing cycle; calculating an initial thresholdnumber of requests for the processing cycle based at least in part onthe seller's margin for the goods or services associated with thee-coupon, and estimated rates of e-coupon redemption; at the end of theprocessing cycle, said commerce server to authorize the provision ofsaid e-coupon when the number of pending mobile requests during theprocessing cycle is equal to or greater than the threshold number; andsaid commerce server to send e-coupon to the mobile electronic deviceresponsive to said authorizing step; wherein upon determining saidnumber of pending requests is greater than or equal to said initialthreshold, said commerce server: creates a pending coupon record in theseller profile; sends said pending coupon record to the seller via theseller instant contact address; creates a pending record of couponsavailable for redemption in the mobile user profile; and sends thepending record of coupons available for redemption to the mobileelectronic device.
 13. A computer program product for use with an outputdevice, said computer program product comprising: a computer-usablemedium having computer-readable program code embodied in said medium forcausing a distribution of e-coupons redeemable for value in the purchaseof goods or services from a seller, said computer program producthaving: computer-readable program code for causing a computer tomaintain mobile user profile and seller profile data in database memory;computer-readable program code for causing a computer to receive arequest to browse at least one e-coupon from a mobile electronic deviceof a user; computer-readable program code for causing a computer toreceive a location of the requesting mobile electronic device;computer-readable program code for causing a computer to determine aplurality of sellers local to the location of the mobile electronicdevice and a plurality of corresponding e-coupons available from saidsellers; computer-readable program code for causing a computer toprovide e-coupon availability data to the mobile electronic device;computer-readable program code for causing a computer to receive arequest for at least one e-coupon of a seller from the mobile electronicdevice; computer-readable program code for causing a computer to logsaid request for an e-coupon of a seller in said mobile user profile andsaid seller profile; computer-readable program code for causing acomputer to determine whether to provide said seller's e-coupon to themobile electronic device in response to the request by determining thenumber of pending mobile requests during a processing cycle; calculatingan initial threshold number of requests for the processing cycle basedat least in part on the seller's margin for the goods or servicesassociated with the e-coupon and estimated rates of e-coupon redemption;computer-readable program code for causing a computer, at the end of theprocessing cycle, to authorize the provision of said e-coupon when thenumber of pending mobile requests during the processing cycle is equalto or greater than the threshold number; and computer-readable programcode for causing a computer to provide said e-coupon to the mobileelectronic device responsive to said authorizing step; wherein thecomputer-readable program code for calculating an initial thresholddivides an advertising fee charged for the e-coupon by a product of theestimated rate of e-coupon redemption times the seller's margin for thegoods or services associated with the e-coupon.
 14. A computer programproduct for use with an output device, said computer program productcomprising: a computer-usable medium having computer-readable programcode embodied in said medium for causing a distribution of e-couponsredeemable for value in the purchase of goods or services from a seller,said computer program product having: computer-readable program code forcausing a computer to maintain mobile user profile and seller profiledata in database memory; computer-readable program code for causing acomputer to receive a request to browse at least one e-coupon from amobile electronic device of a user; computer-readable program code forcausing a computer to receive a location of the requesting mobileelectronic device; computer-readable program code for causing a computerto determine a plurality of sellers local to the location of the mobileelectronic device and a plurality of corresponding e-coupons availablefrom said sellers; computer-readable program code for causing a computerto provide e-coupon availability data to the mobile electronic device;computer-readable program code for causing a computer to receive arequest for at least one e-coupon of a seller from the mobile electronicdevice; computer-readable program code for causing a computer to logsaid request for an e-coupon of a seller in said mobile user profile andsaid seller profile; computer-readable program code for causing acomputer to determine whether to provide said seller's e-coupon to themobile electronic device in response to the request by determining thenumber of pending mobile requests during a processing cycle; calculatingan initial threshold number of requests for the processing cycle basedat least in part on the seller's margin for the goods or servicesassociated with the e-coupon and estimated rates of e-coupon redemption;computer-readable program code for causing a computer, at the end of theprocessing cycle, to authorize the provision of said e-coupon when thenumber of pending mobile requests during the processing cycle is equalto or greater than the threshold number; and computer-readable programcode for causing a computer to provide said e-coupon to the mobileelectronic device responsive to said authorizing step; computer-readableprogram code for causing a computer to maintain in the mobile userprofile a quota of e-coupons the user is allowed to receive;computer-readable program code for causing a computer to receive anotification that said mobile electronic device is at the location ofsaid seller; computer-readable program code for causing a computer toreceive said seller location information; computer-readable program codefor causing a computer to determine whether said e-coupon sent to themobile user has been redeemed; and upon determining said e-coupon hasbeen redeemed, increasing the quota of e-coupons by one in the mobileuser profile.
 15. A computer program product for use with an outputdevice, said computer program product comprising: a computer-usablemedium having computer-readable program code embodied in said medium forcausing a distribution of e-coupons redeemable for value in the purchaseof goods or services from a seller, said computer program producthaving: computer-readable program code for causing a computer tomaintain mobile user profile and seller profile data in database memory;computer-readable program code for causing a computer to receive arequest to browse at least one e-coupon from a mobile electronic deviceof a user; computer-readable program code for causing a computer toreceive a location of the requesting mobile electronic device;computer-readable program code for causing a computer to determine aplurality of sellers local to the location of the mobile electronicdevice and a plurality of corresponding e-coupons available from saidsellers; computer-readable program code for causing a computer toprovide e-coupon availability data to the mobile electronic device;computer-readable program code for causing a computer to receive arequest for at least one e-coupon of a seller from the mobile electronicdevice; computer-readable program code for causing a computer to logsaid request for an e-coupon of a seller in said mobile user profile andsaid seller profile; computer-readable program code for causing acomputer to determine whether to provide said seller's e-coupon to themobile electronic device in response to the request by determining thenumber of pending mobile requests during a processing cycle; calculatingan initial threshold number of requests for the processing cycle basedat least in part on the seller's margin for the goods or servicesassociated with the e-coupon and estimated rates of e-coupon redemption;computer-readable program code for causing a computer, at the end of theprocessing cycle, to authorize the provision of said e-coupon when thenumber of pending mobile requests during the processing cycle is equalto or greater than the threshold number; and computer-readable programcode for causing a computer to provide said e-coupon to the mobileelectronic device responsive to said authorizing step; wherein thecomputer-readable program code for causing a computer to determinewhether to provide said seller's e-coupon to the mobile electronicdevice in response to the mobile request further comprises computerreadable program code for: determining the sellers having pendingrequests for an e-coupon that is not greater than or equal to theinitial threshold calculated for them, and applying an optimizingconsolidation process to all sellers with insufficient pending requests,including eliminating at least one such seller to obtain increasedestimated rates of e-coupon redemption, recalculating using suchincreased estimated rates of e-coupon redemption to determine anoptimized threshold number, and authorizing the provision of saide-coupon when the number of pending mobile requests during theprocessing cycle is greater than or equal to the optimized thresholdnumber.